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Microsoft: Xbox One Delivers "Thousands of Dollars of Value"

By - Source: The Verge | B 66 comments

More of an investment, is it?

Microsoft's Don Mattrick caused a bit of controversy last week when he said those without internet should stick with the Xbox 360. The statement was made in response to questions about the Xbox One's need to 'check in' with Microsoft via the internet every 24 hours. This week, Mattrick is defending the price of the Xbox One, which is $499.


Speaking to Bloomberg TV, Mattrick said that the price was actually a bit lower than some analysts had predicted and great value. Specifically, Mattrick said Microsoft is 'over delivering value' against other choices consumers have. When asked to elaborate he said:

"Well, just any modern product these days, you look at it, $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people so I think they're gonna love it when they use it."

Hmm, we're not sure that will fly with gamers whose main criticisms are based on the PS4 offering more for less at $399.

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  • 0 Hide
    cepheid , June 19, 2013 12:02 PM
    You're really not.
  • 0 Hide
    mapesdhs , June 19, 2013 12:04 PM

    Sounds like Mattrick is trying to convince himself more than anyone else,
    because for sure nobody else is going to believe the nonsense he keeps spouting.


  • 0 Hide
    slomo4sho , June 19, 2013 12:04 PM
    I think he means thousands of dollars in costs over the life of this atrocious system.
  • Display all 66 comments.
  • 0 Hide
    MKBL , June 19, 2013 12:05 PM
    He doesn't sound like a marketing guru.
  • 0 Hide
    jessterman21 , June 19, 2013 12:06 PM
    Yeah, but you're basically offering a product that's like a car that also washes dishes and slices ham.

    For 25% more money than the competition - who happens to have you beat on horsepower, gas mileage, warranty, and looks.
  • 0 Hide
    Ragnar-Kon , June 19, 2013 12:08 PM
    Honestly, $499 isn't a a ridiculously high price point. $499 is pretty reasonable if you ask me, especially considering Kinect is included.

    BUT, when your competitor is offering more of what gamers want at a cheaper price point than you are, you are going to be criticized. Plain and simple.
  • 0 Hide
    ubercake , June 19, 2013 12:08 PM
    Which console will run more quietly? Does anyone know?
  • 0 Hide
    maxiim , June 19, 2013 12:12 PM
    None of this would have happend if they allowed people not to get the kinnect in their "more" for more garbage. 2 Years later you'll see headlines about microsoft handing out kinnect info to NSA
  • -1 Hide
    BSim500 , June 19, 2013 12:15 PM
    Nope. Still not interested. PS: Seen that Amazon poll yet?

    "Amazon is running a poll on their Facebook page asking readers which next generation console – Sony’s PlayStation 4 or Microsoft’s Xbox One – they prefer.

    31,689 PS4 (94.7%) vs 1,754 XBox One (5.3%)

    Update (6/17): It appears Amazon took down the poll, but not before visitors had a chance to take a screenshot of the results. As of late Sunday the numbers were equally one-sided with 38984 votes for the PS4 versus 2162 for the Xbox One".

    The XFail One is dead already. Let it rest in peace whilst you buy yourself a new GFX card or PS4 ...
  • 0 Hide
    coolkev99 , June 19, 2013 12:16 PM
    ...and thousands of pounds of BS.
  • 0 Hide
    slomo4sho , June 19, 2013 12:23 PM
    Which console will run more quietly? Does anyone know?

    The assumption would be the Xbox One since it has an external PSU and, therefore, should run cooler.
  • 0 Hide
    velocityg4 , June 19, 2013 12:23 PM
    I don't understand why Microsoft keeps trying to defend their position when they should be evaluating their policies. It's not as if they had control over the gaming market and can afford to sit on their high horse. Unlike the computer market each new generation of console pretty much wipes the slate clean and a new fight for the market begins.

    Remember how loved SEGA was with the Genesis. Then the Saturn came out and their position faltered then came Dreamcast to wipe them out. An even better example is Atari. Whom at one time was king of the market with the 2600 until the NES since then they kept falling behind until ultimately failing with the Jaguar.

    Microsoft needs to get rid of their current management. They keep trying to force changes on the consumer which the consumer doesn't want. Eventually it's going to really hurt them. With Office and Windows they can get away with it since they hold virtual monopoly power. But not in the gaming space, phones or tablets.

    Apple should wise up and release a $500 desktop and $600 laptop. With Windows 8 the market is ripe for an upset. I wish Linux was viable but it isn't. There is no variant of Linux with a GUI polished enough for the average user. Too much of the OS still requires terminal commands, it is too fragmented and their is virtually no commercial software (at least consumer oriented).
  • 0 Hide
    JPNpower , June 19, 2013 12:27 PM
    Honestly the Xbox One is pretty cool. $500 is not much at all considering the incredible things you get. I don't think anybody has a problem with the price. I think seriously that there are only 3 letters blocking Microsoft's success.

  • 0 Hide
    noobzilla771 , June 19, 2013 12:40 PM
    If you think your Xbox One is worth thousands, then using whatever method you came up with that value must make a PS4 with tens of thousands.
  • 0 Hide
    whiteodian , June 19, 2013 12:43 PM
    Lots of good points. Microsoft continues to sound like a bunch of idiots and really needs to work on their PR. Just want to add a few things.

    Remember how loved SEGA was with the Genesis. Then the Saturn came out and their position faltered then came Dreamcast to wipe them out. - I actually really liked the Dreamcast. I remember several games quite fondly and wish I still had my system to revisit them.

    Apple should wise up and release a $500 desktop. - Mac mini $599.
  • 0 Hide
    sherminator , June 19, 2013 12:49 PM
    The Amazon poll doesn't really mean shit...sounds like its a bunch of disgruntled 12 year old gamers that are pissed at Microsoft. Last time I checked the sales # on the Xbox One and PS4 are Number 2 and 3 respectively.

    I do think that MS does need to work on their PR on the Xbox One to mitigate some of the tomfoolery thats going on. I personally don't see any real advantages other then price (which is partly offset by the Kinentic being bundled with the Xbox 1) with the PS4 over the Xbox 1. The way they are dealing with used games is something they need to address with better information and it seems like Sony is glossing over this since it seems a similar system is in place for 3rd party games and the system on the Xbox is going to be enforced by the developer if they wish to do so.
  • 0 Hide
    xelliz , June 19, 2013 12:50 PM
    Dear Microsoft,
    Please see Sony during the announcement, release and first few years of the life of PS3.
  • 0 Hide
    falchard , June 19, 2013 12:57 PM
    The main problem with the Xbox One is the size of the APU. Much like NVidia had problems always making bigger and bigger chip sizes, the Xbox One is going to have a behemoth because they included the ESRAM on chip. The ESRAM makes sense when you consider video resolutions, but its going to result in decreased yields and a hotter chip.
    Also it looks like Sony is just plain looking at selling the PS4 at a loss from the get go. The $399 price is actually quite incredible since the cost of the individual components is closer to Microsoft's price point. Its clear to see the PS4 is relying on the cost reducing by the time the console ships due to the upcoming 22nm die shrink in 2014.

    The thing that doesn't make sense to me in Microsoft's game strategy is they are leaving out PC gaming for absolutely no reason. Microsoft's console will be a digital based console where the games are downloaded from the cloud. It should reduce cost overhead on the individual games but will require an internet connection. With Microsoft's unified platform, a lot of the games will be developed on the same Windows platform that should increase compatibility in Windows RT, Windows Phone, and Windows 8. The thing that does not make sense is why deny PC games and Windows 8 in general easy access to games on the Xbox One. From a selling standpoint it makes no sense to shrink your market. Imagine clicking on the Microsoft Store icon on windows 8 and there actually being good games to play there in the Modern UI interface.
  • 0 Hide
    ubercake , June 19, 2013 1:00 PM
    It really doesn't make sense to start with a platform that has hardware less capable than that of your competition and then price it higher.

    We all know Apple hasn't been too successful with this marketing model (?). Oh wait!... They have been!

    My guess is MS will try marketing the heck out of the XBOX One following the Apple strategy. More MS retail stores will be opening soon. Sony retail stores have been closing down for the past couple of years. We've seen what hackers have been able to do to Sony's networks, so the online component of the XBOX will probably be more stable.

    If you're looking for the best gaming experience, you're gaming on a PC. The console will fill a different kind of need (TV Integration, Streaming media, communications, and other internet-related services) for people gaming on PCs.

    If you don't want to fork out the bucks for a good gaming PC, you look to the console for your gaming and you get all of the other services with it. If it were all about games for me and I didn't want to spend the cash for or couldn't afford a good gaming PC, I'd definitely be eyeing up a PS4.

    Since I'm looking at it more from the other services it has to offer and a quiet console, both are still on the table for me. PSN kind of stinks compared to XBOX Live, so I'm interested in whether or not the PSN service will be updated for the PS4 release. I like the integration with cable that the XBOX One has to offer. I like the cable "passthrough" feature. Does Sony offer anything similar?

    At any rate, if gaming is secondary to you as it is for me, I'm considering the XBOX One as an entertainment console rather than gaming console. I just haven't seen a whole lot out there with regard to the PS4 yet and what it really has to offer beyond the parallelogram shape.

    At this point, it seems like the less they reveal, the fewer people they will piss off.
  • 0 Hide
    sherminator , June 19, 2013 1:04 PM
    It really doesn't make sense to start with a platform that has hardware less capable than that of your competition and then price it higher.

    Slightly faster CPU and Memory don't make much of a difference...just look at the PS3 vs Xbox 360...the PS3 had multiple core CPU etc etc and its games didn't look any better then the Xbox360. Just having bigger numbers when the specs are pretty close to one another isn't a "knockout blow" as some people are making it out to be. Its going to be the developers who are going to show if it is really that big of a difference or not.
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